Spectator on facebook

Spectator on facebook

Urbanists warn of increase in prices

THE NEW fee paid by developers which municipalities should use to cultivate the environment may increase the prices of new flats by thousands of euros.

Illustrative stock photo(Source: SME)

The urbanists associated in the Institute of Urban Development (IUR) civic association have warned that the draft, authored by Smer MPs Igor Choma (Žilina mayor) and Richard Raši (Košice mayor) which is currently being discussed in the parliament, has several flaws. One of them is a high development fee, amounting to €10-45 per square metre of above-ground floor area.

“If they used the maximum tariff, the price of flats would increase by €3,000-7,000, depending on the size,” IUR executive director Juraj Suchánek said, as quoted by the Sme daily.

Moreover, the proposed sum is not supported by any surveys.

“The preparation of such a complicated law, which will have nationwide effectiveness, was weak,” said IUR deputy chair Drahan Petrovič, who has experiences with introduction of a similar fee in Vancouver, Canada, as quoted by the SITA newswire.

Also other analysts have warned of an increase in prices of flats. INEKO think tank head Peter Goliaš told Sme that developers may transfer part of their costs to consumers. The exact amount will depend on the demand, he added.

Except for a high fee, the municipalities may impose it on various lands, even smaller areas. This may cause that while the developer will have to pay for one building, others will not have to pay for similar size construction located elsewhere. This may discriminate against construction projects and boost corruption, the urbanists warned, as reported by SITA.

Moreover, the draft law does not say how the fee should be used. This duty, which was part of the original proposal, was omitted from the current version, Suchánek said. The law also does not oblige municipalities to send the money to a separate account which would allow better control of its use.

“It is necessary to re-write the law, otherwise it will result in increasing real estate prices, from which only the end consumer will suffer,” IUR members claimed, as quoted by SITA.

Choma told Sme he is ready to discuss possible changes. The critics know where to turn if they want to negotiate, he added.

Top stories

No Slovaks among the victims of Manchester attack so far

The representatives of Slovakia have expressed their sympathy to the families of the victims.

Police guard close to the Manchester Arena in Manchester, Britain, on May 23, 2017, a day after an explosion.

It's not your Slovakia, Bystrica protesters told Kotleba

President Andrej Kiska spoke to the crowd at the protest gathering, asking Slovaks what kind of country they want to have.

Lajčák gives two versions of the Evka story

The Foreign Ministry gives opposing statements about suspicious procurement related to the Slovak Presidency over the EU Council.

Government of PM Robert Fico (left) endorses Lajčák as its official candidate.

Napoleon’s oak planted in Bratislava's Tyršovo Embankment Photo

An oak of Napoleonic legend was replanted, part of a commemoration spanning several days.

Planting "Naopoleon's oak" on May 20, 2017.